When it comes to understanding the levers for creating ROI in people, we must first map out the typical employee lifecycle across the performance curve.
When a person starts a new role, they go through a phase that requires investment by the organisation to get them to the point of break even, at which time the employee generally starts to generate more value for the organisation than it costs to employ them. At this time, they have now transitioned to the performing phase and the organisation’s objective now firmly turns to help the employee both quickly reach and sustain peak performance. It is while an employee is at peak performance they are deriving maximum profitability for the organisation.
Time is a key factor in this journey; the faster you can accelerate an employee to peak performance, the greater cost savings you can achieve and the higher profit generation you can assist the employee to contribute. Declining performance, if not managed or turned around, will ultimately lead to a business-initiated termination as the cost of employing the staff member becomes greater than the value they create.
intelliHR provides you all the Performance Management tools you need to enable your employees and their managers to have a measured and positive impact to self-manage through all phases of their employment. Using intelliHR, organisations can actually accelerate time to performance, and extend profitability beyond the initial performing phase.
Start the onboarding process earlier to get a head start. Always be prepared for new starters and ensure they have everything they need to hit the ground running in their new role. This should include providing all necessary training as soon as possible.
One way the onboarding process can be accelerated is by introducing new starters to their role in a phased approach. By starting them off with simple tasks they can master fast, and gradually increasing complexity over time, onboarding costs stay low and ROI is achieved sooner.
After the initial onboarding period, it’s important to continue investing in your people to maximise ROI long term. Using intelliHR, you can arm your people and their leaders with the tools to take control of their performance and take it to new heights. Today’s employees want self-led tools to manage their own performance and development. Some of the features that enable this include: goal setting and tracking, continuous feedback tools, and instant performance reports. These tools help new hires feel instantly more engaged and in-control of their role.
Likewise, managers and leaders in the business need opportunities to communicate with their new direct reports or team members while also having real-time visibility to determine if there are any early issues that need to be dealt with. Regular check-ins enable leaders to ask their new hire how they’re settling in while keyword analysis and sentiment analysis provide deeper insights on the underlying emotional tone.
If staff are non-productive or disengaged, their impact on your business can only be defined at best as sunk wages. If low productivity or disengagement have been identified and corrective action has not been effective, it is best to initiate processes to help these employees find alternative employment options as soon as possible to minimise lost productivity and wasted wage costs.
The perfect role needs to fit your organisation’s needs as well as the skills and talents of the employee who fills it. This is a balancing act, but it pays to keep things flexible and adapt the role to changing needs on both sides, to derive maximum productivity and returns. A constantly evolving role that develops with an employee allows them to grow and stay engaged better than a static position description can.
Goals can be used to align expectations but also keep the focus of employees agile and dynamic. Leaders can focus business unit/team activities in alignment with individual talents, interests, and development challenges. Use regular, continuous feedback opportunities to keep your finger on the pulse and an annual role evaluation as a great chance to reset.
Imagine taking your best ever onboarding, and replicating it perfectly across every future hire. This can be achieved by setting up your onboarding workflow in intelliHR. An automated onboarding workflow helps get new starters settling in and up-to-speed sooner, while also ensuring the process is optimised and consistent for everyone.
In order to accelerate and extend performance as much as possible, having a complete performance toolkit is essential. At a minimum, this should include goals to set priorities and track progress, continuous feedback to help people stay on track, training management to measure professional development, and performance reporting to bring all of this information together.
When offboarding is required, it’s important to be able to action it swiftly, and extract as much value from it as possible. In order to be able to do this, you’ll need to have great performance improvement record keeping in place, as well as an offboarding workflow that can be triggered and take care of all compliance steps automatically, while also gathering important exit feedback. This feedback will help you understand where things might have been better, helping you to potentially optimise your employee experience, or support a manger who is facing some challenges with their team.
We’ve come up with an easy way to comprehensively calculate these costs for you.
Follow the 4 steps below to download and use our calculators to accurately calculate your Employee Turnover, Onboarding, Performance Management and finally your TOTAL cost of your HR Affairs.
You will need to use all 4 calculators to build an accurate Business Case for your organisation’s cost of HR Affairs.